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In equilibrium, a perfectly competitive firm will equate                    
  • a)
    marginal social cost with marginal social benefit    
  • b)
    market supply with market demand    
  • c)
    marginal profit with marginal cost    
  • d)
    marginal revenue with marginal cost
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
In equilibrium, a perfectly competitive firm will equate a)margina...
D is the correct option. Equilibrium in perfect competition is the point where market demands will be equal to market supply. A firm's price will be determined at this point. In the short run, equilibrium will be affected by demand. ... A firm will receive only normal profit in the long run at the equilibrium point.
Hence, marginal revenue with marginal cost is equated.
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In equilibrium, a perfectly competitive firm will equate a)marginal social cost with marginal social benefit b)market supply with market demand c)marginal profit with marginal cost d)marginal revenue with marginal costCorrect answer is option 'D'. Can you explain this answer?
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